Question for the Money Doctors

Question submitted on Mar 5, 2014.

Question

Do you recommend purchasing a TIPS 4/2014. I am looking for principal safe investment with some small return w/no costs.

Answer

If you are looking for a safe way to hedge against inflation and principle at a low cost, TIPS can be a great vehicle. Just a reminder that you must hold the TIPS bonds to maturity to guarantee lose of principle. Good luck!